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9 <br /> a. Public Hearing and Adoption of Bond Order and Resolution Related to $5.9 Million <br /> Two-Thirds School Bonds <br /> The Board conducted a public hearing as outlined in the two-thirds bond authorization <br /> schedule and adopted the bond order and resolution to publish the bond order. The bond <br /> order authorizes the issuance of two-thirds General Obligation Bonds in an amount not to <br /> exceed $5.9 million to support school facilities, and the bonds replace the General Fund pay- <br /> as-you-go funding in FY 2017-18 and a portion in FY 2018-19, as reflected in the Capital <br /> Investment Plan (CIP). <br /> Gary Donaldson, Chief Financial Officer, reviewed the background information: <br /> BACKGROUND: <br /> Pursuant to North Carolina General Statute 159-48, local governments can issue General <br /> Obligation bonds each year in an amount equal to two-thirds of the principal amount of debt <br /> retired in the previous year. Two-thirds General Obligation bonds may be issued without <br /> referendum but are subject to approval by the Local Government Commission in the same <br /> manner as other debt financings. <br /> The County will retire $8.8 million in principal on outstanding General Obligation bonds in FY <br /> 2016-17. The Statutes allow the County to issue up to two-thirds of the $8.8 million in principal <br /> retired or an additional General Obligation bond capacity of$5.9 million in FY 2017-18. This <br /> bond capacity cannot be accumulated or carried forward to future years. The Board adopted a <br /> resolution at its May 2, 2017 meeting providing preliminary approval of this bond issue. The <br /> bond order was introduced at the May 16, 2017 BOCC meeting and a resolution authorizing <br /> tonight's public hearing was adopted as well. Two-thirds bonds can be used for substantially all <br /> the purposes for which voter-approved bonds may be issued except to fund auditoriums, <br /> coliseums, stadiums, convention centers, art galleries, museums, historic properties, urban <br /> redevelopment, public transportation or cable television systems. <br /> After review of the County's CIP and in consultation with the County's financial advisor, County <br /> staff recommends that the County proceed to authorize and issue the two-thirds bonds for <br /> school renovations and facility improvements for both school systems, as well as the costs of <br /> issuance for the bonds. The bond proceeds would be allocated on the average daily <br /> membership for both school systems, with Chapel Hill-Carrboro City Schools (CHCCS) <br /> receiving approximately $3.5 million and Orange County Schools (OCS) receiving $2.4 million. <br /> Examples of school renovation and improvement projects include: Athletic Facilities, <br /> Classroom/Building improvements, Mechanical Systems, Roofing projects, and School <br /> Safety/Security improvements. Both school systems maintain flexibility in the process at this <br /> point, but some of the currently planned projects include: <br /> Chapel Hill-Carrboro City Schools (CHCCS) <br /> • Athletic Field Improvements at Chapel Hill High School <br /> • Athletic Field Improvements at Carrboro High School <br /> • Classroom Improvements in Science classrooms at Phillips Middle School <br /> • Cooling Tower Replacement at Scroggs Elementary <br /> • Cooling Tower Replacement at East Chapel Hill High School <br /> Orange County Schools (OCS) <br /> • Upgrade Science classrooms at Cedar Ridge High School <br /> • Roofing Project at Central Elementary <br />